MRTA vs MLTA Calculator
Put your own two quotes in. The part most comparisons miss is the interest you pay when the MRTA premium is financed into the loan.
Most banks offer this. Untick it to see what the premium costs you in cash instead.
MRTA
RM 22,924.46
includes RM 10,924.46 of interest on the financed premium
Declining cover
MLTA
RM 63,000.00
Level cover RM 450,000.00
Surplus goes to your family
MLTA costs RM 40,075.54 more over the term
Coverage over time
| Year | MRTA cover | MLTA cover |
|---|---|---|
| 0 | RM 450,000.00 | RM 450,000.00 |
| 5 | RM 418,559.35 | RM 450,000.00 |
| 10 | RM 379,785.93 | RM 450,000.00 |
| 15 | RM 331,969.55 | RM 450,000.00 |
| 20 | RM 273,001.16 | RM 450,000.00 |
| 25 | RM 200,279.81 | RM 450,000.00 |
| 30 | RM 110,597.97 | RM 450,000.00 |
| 35 | RM 0.00 | RM 450,000.00 |
Estimates for planning only, not insurance or financial advice. Premiums are your own figures — they vary widely by age, gender and cover, so we do not publish any premium figures. Excludes any surrender value if MRTA is redeemed early, and any cash value or investment component of MLTA. Confirm with formal quotes from your insurer and bank.
Frequently asked questions
- What is the difference between MRTA and MLTA?
- MRTA cover falls as your loan balance falls and typically pays a single premium at the start; MLTA cover stays level and is paid monthly. MRTA protects the bank's exposure; MLTA leaves whatever is left over to your family.
- Is financing the MRTA premium into the loan a good idea?
- It is convenient and costs more than it looks. A RM12,000 premium financed over 35 years at 4.2% means paying about RM22,900 in total — roughly RM10,900 of it interest. You are borrowing money to buy insurance and paying loan interest on it for the full tenure.
- Which one is cheaper?
- On these example figures MRTA is cheaper in total, but MLTA buys level cover that does not shrink. Compare what each actually pays out at the point you would need it, not just the premium.
- Do I have to take either?
- Neither is compulsory by law, though banks often price the loan on the assumption you will take one. Some people rely on separate term life cover instead. Get quotes for all three before deciding.
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